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ON THE MOVE – Victoria Gold president John McConnell expects to begin development next year of the Eagle gold property at Dublin Gulch near Mayo, with production starting in 2018. Photo by WWW.ARCHBOULD.COM
Eagle Gold Project production eyed for 2018
Victoria Gold president John McConnell says the company is targeting next spring to begin development of its Eagle Gold Project at Dublin Gulch northeast of Mayo.
Victoria Gold president John McConnell says the company is targeting next spring to begin development of its Eagle Gold Project at Dublin Gulch northeast of Mayo.
“We need 18 months to build it, and that would put us in production in 2018,” he said in an interview this week.
McConnell said he is confident Victoria Gold can raise the $400 million in financing it needs to bring the open-pit operation into production.
It already has a qualified feasibility study and is fully permitted with both a mining licence and a water licence, he pointed out.
McConnell there are not many projects out there that are fully permitted, ready to go, located in a safe jurisdiction and will produce over 200,000 ounces of gold per year.
The company is currently updating its feasibility study, and is continuing an exploration program on the Olive deposit nearby, he explained.
McConnell said they are looking for additional viable deposits within driving distance of the Eagle deposit to increase the overall value of the Eagle Project.
The Olive deposit, he pointed out, is two kilometres from Eagle.
Victoria Gold has drilled more than 80 holes at Olive, with three drills going 24-7 since late March, McConnell said.
He said the company is now entering the second phase of its exploration program for 2016, using $2.9 million raised last week in the sale of flow-through shares.
The company would like to include results from the Olive deposit in the updated feasibility study, he said.
McConnell said total expenditures this year will be on par with the $6 million spent at the Eagle property last year.
Victoria Gold’s Eagle Project is receiving international attention, he said, pointing out the $16 million in shares purchased earlier this year by the Electrum Strategic Opportunities Fund, a New York-based investment fund with a focus on mining projects.
McConnell said having an investment from Electrum is always a big endorsement.
Since Victoria Gold currently has more than $35 million in the bank, he added, it’s not under any financial pressure.
McConnell said as a realist, he knows the company needs to wait for the right time, for the price of gold to align with the capital markets, though he remains confident the construction will begin next spring.
“Our game plan right now is drill off Olive, include in the updated feasibility stage, which will be out in the fall, and use that document to raise financing, whether it’s debt or equity, next spring....
“We think it will certainly turn a few heads,” he said of the updated feasibility statement.
Shares of Victoria Gold were selling Thursday for 48 cents a share, up from a low of 11 cents in the last 12 months and down from a high of 54 cents.
McConnell said with the three drills from Kluane Drilling going around the clock, there are approximately 50 employed on the site currently.
The company expects the work force will peak at somewhere around 400 during construction, with a full-time staff of about 400 during production.
The mine life is currently estimated at eight to 10 years.
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Comments (11)
Up 0 Down 0
BB on Jun 30, 2016 at 4:36 pm
To ProMining Greenie, who said I was against a fee for tourism businesses which benefit from the preservation of our ecosystem? Of course they should pay a fee! No need to get your knickers in a knot. However you should check your own logic. Removing something of value permanently is not equal to traveling through and theoretically damaging nothing, removing nothing. You are equivocating by stating that having meaningful royalties for permanently removing value from the Yukon, (not to mention the destruction and pollution and clean up), is equal to floating down a river.
Nevertheless, there should indeed be payment for profiting from our land. Many of the tourism industry companies operating in the Yukon are run by people who do not live in the Yukon, or even Canada.
Up 4 Down 7
Jeffrey White on Jun 30, 2016 at 8:22 am
"The Zortman-Landusky gold mine is a case study of the environmental risks of cyanide heap-leach gold mining and the impacts that these operations can have on communities, water and cultural resources. The Zortman-Landusky mine illustrates how modern mine operations continue to impact landscapes and leave behind massive environmental problems and liabilities. The mine experienced many problems, such as cyanide spills, and surface and groundwater contamination from acid mine drainage. This was one of the first massive cyanide heap-leach operations to open, as well as one of the first to close, leaving behind significant pollution and cleanup problems ."
Source: Carlton College - Many lawsuits pending at Ft. Belknap.
Up 3 Down 8
Tomas on Jun 29, 2016 at 9:50 pm
All the licenses and permits are in place and they're ready to go.
Has there been an environmental review on this? Oh, who needs one of those?
Up 12 Down 2
ProScience Greenie on Jun 29, 2016 at 7:10 am
By your logic BB, we should also have a royalty / fee on the heavily subsidized tourism industry. Why aren't we doing that?
Up 11 Down 2
ProScience Greenie on Jun 29, 2016 at 7:08 am
By your logic BB, we should also have a royalty / fee on the heavily subsidized tourism industry. Why just mining?
Up 5 Down 8
Buford S. on Jun 28, 2016 at 6:37 pm
Will they be using the heap leach process with cyanide to process the ore?
Up 16 Down 1
Brian on Jun 28, 2016 at 6:14 am
I can't wait to go to work, right on team Vic Gold!!!!
Up 15 Down 17
BB on Jun 27, 2016 at 5:42 pm
Victoria Gold estimates they will remove $300 million a year worth of gold from the earth. As far as I am aware, royalties for gold are still 17 cents an ounce. So we should get a grand total of thirty thousand bucks a year in royalties That is a share of one ten-thousandth. The Yukon Party has done a great job of preserving the royalty regime for the mining industry but a poor job on behalf of the Yukon.
Add to this, the Yukon "ATCO" electric rate payer (you), are supposed to build Victoria Gold's $80,000,000 transmission line.
Another example of mining permanently removing resources from the Yukon, getting Yukoners to provide for their power needs (destroying our environment to do it if necessary).
The estimated 400 jobs at even an average of $70,000 a year each = $28 million a year, less than 10% of the value of what they are taking.
Can we have some politicians who can negotiate on behalf of the Yukon instead of working for the mining companies?
Up 29 Down 10
Paul on Jun 25, 2016 at 12:44 pm
Hopefully the quoted 400 million dollar development cost of this mine, also includes the 80 million dollars that Yukon Energy is trying to justify spending, to upgrade the power line from Stewart Crossing to Keno. This huge cost should be 100% absorbed by Victoria Gold UP FRONT as there is really no other reason for installing the 138kv transmission line to this area. Yukon rate payers have already had to pay for, and are still paying for far too many of Yukon Energy's failed policies.
Up 12 Down 6
$220,000 a year in gross revenues on Jun 25, 2016 at 10:04 am
That a lot money coming out of just a Yukon mine per year.
Up 28 Down 13
400 jobs in construction 400 when the mine is operating on Jun 25, 2016 at 9:39 am
These are good paying jobs. As the Bank of Canada Governor stated, the economy is fighting its way back.